A new 'affordable housing' definition could slash rural rent prices by up to a half. National CPRE's latest briefing on rural housing is calling for the definition to be based on net income rather than local market rates,
Currently, rents set at 80% of the standard market rate are classified as ‘affordable’, which is still out of reach for many families and those on low incomes. CPRE is urging the government to change this definition and set affordable rents at 35% of net income for the lowest income groups unless 80% of market rate is cheaper.
CPRE says: 'The term “affordable housing” has become completely meaningless. Inflated land prices, a rise in private house prices and a failure to build enough social rented homes – in addition to the tens of thousands sold through Right to Buy – have driven rental prices to a point where 80% of market rate is out of reach for so many people.'